Sandoz’s US dermatology and oral solids businesses sold to India’s Aurobindo Pharma Ltd.
Novartis CEO Vas Narasimhan has announced plans to sell pieces of its Sandoz unit. The Swiss company released that India-based Aurobindo Pharma Ltd will pay $900 million for the dermatology and generic oral solids portfolios of Sandoz US, along with approximately 300 products and additional development projects of Sandoz. Aurobindo has the potential to earn an additional $100 million in performance-based payments as well.
The Sandoz businesses not part of the sale will remain core units of Novartis, including its biosimilars operations. As a result, Sandoz US will still have a sizable portfolio. In addition to biosimilars, other units remaining include value-added medicines and complex generics such as injectables, respiratory treatments and ophthalmics.
As part of the deal, Aurobindo Pharma USA Inc. will acquire Sandoz plants in Wilson, North Carolina and Hicksville and Melville, New York. The acquisition will make Aurobindo the second largest dermatology player and the second largest generics company in the US based on prescriptions, according to Aurobindo Pharma Managing Director N. Govindarajan.